Slide 1: Fourth Quarter Fiscal 2016 Earnings Conference Presentation
Confidential Fourth Quarter Fiscal 2016 Earnings Conference Presentation August 4, 2016 © 2016 Supermicro
Slide 2: Safe Harbor Statement
Confidential Safe Harbor Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may relate, among other things, t
Slide 3: Non-GAAP Financial Measures
Confidential Non-GAAP Financial Measures Non-GAAP gross margin in this presentation excludes stock-based compensation expense. Non- GAAP net income and net income per share in this presentation exclude stock-based compensation expense and the related tax effect of the applicable items. Management pr
Slide 4: Q4'FY2016 Non-GAAP Financial Highlights
Confidential Q4’FY2016 Non-GAAP Financial Highlights (in millions, except per share data) Change Q4'16 YoY Sequential Revenue $524.3 -8.6% -1.6% Profit after Tax $10.4 -65.4% -45.4% EPS $0.20 -64.9% -44.4% Direct business was 53.2% of total revenues System business was 65.5% of total revenues 4
Slide 5: Q4'FY2016 Major Markets
Confidential Q4’FY2016 Major Markets Datacenter/Cloud 18.1% of Total Revenue 6% YoY Growth Storage 19.1% of Total Revenue -15% YoY Growth 5 CY’ Q1’ Q4’
Slide 6: Q4'FY2016 Revenue by Geography
Confidential Q4’FY2016 Revenue by Geography United States Europe Asia 62.2% 17.5% 15.8% Other – 4.5% 6 CY’ Q1’ Q4’
Slide 7: World's Best Server/Storage Product Lines
Confidential World’s Best Server/Storage Product Lines The Ultra 1U and 2U Broadwell Product Lines 24 DIMM, 160W Xeon CPU, Flexible I/O, NVMe support 3 to 15% less power consumption than competition The 1U/2U TwinPro and 4U FatTwin Most optimized for Hyper-converged Applications Best per
Slide 8: Growth in IoT Embedded
Confidential Growth in IoT Embedded 30% Revenue Growth YoY, $200M and 10% of Total Revenue. More than 3 Years of R&D Investment Target Double Digit Growth in FY17 8 CY’ Q1’ Q4’
Slide 9: Revenue Trend
Confidential Revenue Trend Supermicro Revenue Trend #039;s millions $639 $574 $520 $533 $524 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Y/Y 34.0% 17.2% 27.0% 13.1% -8.6% Seq. 21.7% -9.4% 23.0% -16.6% -1.6% 9 CY’ Q1’ Q4’
Slide 10: Revenue Analysis
Confidential Revenue Analysis Supermicro Subsystems/System Revenue #039;s millions $354 $454 $356 $372 $343 $220 $163 $185 $160 $181 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Subsystems Systems 10 CY’ Q1’ Q4’
Slide 11: Non-GAAP Gross Margins
Confidential Non-GAAP Gross Margins 16.7% 15.7% 14.9% 13.9% 14.1% Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 11 CY’ Q1’ Q4’
Slide 12: Non-GAAP Operating Margins
Confidential Non-GAAP Operating Margins 7.8% 8.3% 5.3% 4.9% 3.1% Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 12 CY’ Q1’ Q4’
Slide 13: Summary P&L non-GAAP
Confidential Summary P&L non-GAAP (in millions, except per share data) Change Q4'16 YoY Sequential Q4'15 Q3'16 Operating Expense $57.9 $12.6 $6.8 $45.3 $51.1 Operating Expense Ratio 11.0% 3.1% 1.4% 7.9% 9.6% Operating Income $16.2 -$28.6 -$12.1 $44.8 $28.3 Net Income $10.4 -$19.6 -$8.6 $30.0 $19.0 E
Slide 14: Q4 FY2016 YTD Summary Statement of Cash Flows
Q4 FY2016 YTD Summary Statement of Cash Flows Confidential ($’s millions) 12 Months Ended 12 Months Ended 30-Jun-16 30-Jun-15 Net Income $72.0 $101.9 Depreciation and amortization $13.3 $8.1 Stock-based comp expense $16.1 $13.7 Other reserves $0.4 -$1.9 Net change in AR, Inventory, AP -$16.7 -$188.2
Slide 15: Q4 FY2016 Summary of Balance Sheet Metrics
Confidential Q4 FY2016 Summary of Balance Sheet Metrics ($’s millions) Q4'16 Q3'16 Change Cash Equivalents & Investments $183.7 $179.1 $4.6 Accounts Receivable $288.9 $285.7 $3.2 Inventory $449.0 $479.3 $(30.3) Accounts Payable $249.2 $277.3 $(28.0) DSO 50 51 -1 DIO 94 97 -3 DPO 53 60 -7 Cash Cycle
Slide 16: Supplemental Financials
Confidential Supplemental Financials Fourth Quarter Fiscal 2016 Ended June 30, 2016 16 CY’ Q1’ Q4’
Slide 17: Prior Period Net Income Comparisons
Confidential Prior Period Net Income Comparisons (in millions, except per share data) Q4'16 Q3'16 Q4'15 Net Income (GAAP) $7.0 $16.7 $26.7 Stock-based Compensation Expense (tax affected)* $3.4 $2.3 $3.3 Net Income (Non-GAAP)* $10.4 $19.0 $30.0 Diluted Net Income per common share (GAAP) $0.13 $0.32 $
Slide 18: Non-GAAP Financial Summary
Confidential Non-GAAP Financial Summary (in millions, except per share data) Q4'16 Q3'16 Q4'15 Net Sales $524.3 $532.7 $573.6 Non-GAAP Gross Margin 14.1% 14.9% 15.7% Non-GAAP Operating Expenses $57.9 $51.1 $45.3 Non-GAAP Operating Income $16.2 $28.3 $44.8 Non-GAAP Net Income $10.4 $19.0 $30.0 Non-GA
Slide 19: GAAP to Non-GAAP Reconciliation
Quarterly Net Income (Loss) Confidential GAAP to Non-GAAP Reconciliation (in millions, except per share data) Q4'16 Q3'16 Q2'16 Q1'16 Q4'15 Net income (GAAP) $7.0 $16.7 $34.7 $13.7 $26.7 Adjustments: Stock-based compensation expense $4.4 $3.9 $4.0 $3.9 $4.0 Income tax effects of adjustments $(1.0) $